Juniper briefed MMW on Thursday about its latest projections, which call for the value of global payments via mobile devices to reach $507 billion this year, a rise of nearly 40% year-on-year.
The report’s findings – published in Mobile Payment Strategies: Remote, Contactless & Money Transfer 2014-2018 – indicate that growth would continue to be driven by purchases of physical goods via mobile devices. Average transaction sizes over tablets are already exceeding those via desktop PCs in many markets. It also observed that while spend via smartphones was increasing sharply, their primary function in retail was as search and discovery devices with the final purchase being made on the tablet.
Meanwhile, Juniper finds, the scale of digital transactions was receiving a significant boost through the adoption of mobile ticketing applications, with metro and transit authorities in Europe and North America that have already deployed services, experiencing high levels of adoption.
The growth is particularly notable, we observe, when you consider that the rate of contactless mobile payments has been slow to grow.
“The prevalent business models for NFC have been unattractive to banks and left them dependent on multiple network operators, each of which may have its own approach to mobile wallet management,” says report author Dr. Windsor Holden. “HCE (Host Card Emulation) solutions have the potential to revitalize a market which has struggled to gain traction.”